Crocs (NASDAQ:CROX) stock is on the rise Monday after providing investors with a strong 2024 guidance and expectations for 2023 results.
Starting with its guidance, Crocs estimates that revenue in 2024 will increase between 3% and 5% over 2023 revenue. That will come from a 4% to 6% increase in the Crocs brand and a flat to 1% increase from the HEYDUDE brand.
Crocs’ 2024 outlook also includes non-GAAP operating margins of roughly 25%. The company says it will use the money from its larger gross margins for brand accretive and strategic SG&A investments.
CROX Stock Jumps on 2023 Estimates
Crocs is also looking for revenue in 2023 to be up more than 11% compared to 2022. The company points out that this would be better than its guided revenue growth of 10% to 11% for the year.
When it comes to Q4 2023 revenue, Crocs expects growth of 1% year-over-year (YOY). That’s another positive compared to the prior estimate for revenue to decrease between 4% and 1%.
Crocs CEO Andrew Rees said the following about the company’s earnings:
“2023 was a strong year for Crocs, Inc. that culminated in a successful holiday season with market share gains for both brands […] Our strong free-cash flow generation enabled us to pay down $277 million in net debt in the quarter, bringing our full-year debt pay down to $665 million.”
CROX stock is up 20.4% as of Monday morning. That comes as 4 million shares change hands. The company’s daily average trading volume is about 1.5 million shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
